Checked Two Dominated Portfolios

Consider these historical returns for these three assets

Domestic Foreign Other

$3\mathrm{.}6\%17\mathrm{.}6\%11\mathrm{.}8\%$

$3\mathrm{.}5\%17\mathrm{.}5\%-1\mathrm{.}6\%$

$2\mathrm{.}1\%1\mathrm{.}0\%1\mathrm{.}0\%$

$-1\mathrm{.}5\%-0\mathrm{.}1\%-0\mathrm{.}1\%$

$5\mathrm{.}9\%18\mathrm{.}4\%10\mathrm{.}4\%$

$5\mathrm{.}8\%2\mathrm{.}1\%9\mathrm{.}6\%$

$-1\mathrm{.}6\%-1\mathrm{.}5\%9\mathrm{.}5\%$

$1\mathrm{.}0\%19\mathrm{.}9\%2\mathrm{.}1\%$

$-0\mathrm{.}1\%19\mathrm{.}8\%-1\mathrm{.}5\%$

$4\mathrm{.}4\%-1\mathrm{.}6\%11\mathrm{.}9\%$

Consider the following weights $($and start with $$1,000).$

Domestic Foreign Other

Portfolio One $5\%32\%63\%$

Portfolio Two $5\%63\%32\%$

Portfolio Three $32\%5\%63\%$

Portfolio Four $32\%63\%5\%$

Portfolio Five $63\%5\%32\%$

Portfolio Six $63\%32\%5\%$ #$2$ This question is about the Foreign asset for Portfolio Four.

What happens at the beginning of the second year?

A Between $0$ and $25$ will be added

B Between $25$ and $100$ will be added

C Between $0$ and $25$ will be subtracted

D Between $25$ and $100$ will be subtracted

Please put your answer on the Answer Sheet